Caesars overhauls refinancing; NES Global Talent downsizes; funds see $762.3 million inflows

By Paul A. Harris

Portland, Ore., Sept. 26 - The LCDX 20 index of bank loan credit default swaps finished the Thursday session unchanged at 104 bid 104 5/8 offered, according to a hedge fund manager.

Money continued to flow in to the leveraged loan asset class during the most recent week.

The bank loan funds saw $762.3 million of inflows for the week to Wednesday, according to a market source who was citing information contained in a weekly report from Lipper-AMG.

In the primary market, Caesars Entertainment Resort Properties, LLC overhauled up to $5.25 billion of bond and bank financing currently in the market and set price talk.

NES Global Talent downsized its six-year first-lien term loan to $185 million from $200 million.

Caesars overhauls refinancing

Caesars Entertainment Resort Properties, LLC overhauled up to $5.25 billion of bond and bank financing and set price talk on Thursday, according to a syndicate source.

The company downsized its first-lien term loan from $3 billion to a range of $2 billion to $2.5 billion and talked the deal with a 550 basis points Libor spread and a 1% Libor floor.

Caesars also added a point to the original issue discount, deepening that discount to 98 from the original OID talk of 99.

Commitments are due at noon ET on Friday, and the deal is expected to price and allocate thereafter.

Joint lead arranger Citigroup is the administrative agent. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co, Macquarie, Morgan Stanley & Co. LLC and UBS Investment Bank are also joint lead arrangers.

The bond portion of the financing was increased to a range of $2.25 billion to $2.75 billion from a previous overall size of $1.85 billion.

Proceeds, along with $100 million of proceeds from a 10 million share offering of common stock from Caesars Entertainment Corp., will be used to help refinance about $4.4 billion of CMBS debt and the $450 million senior secured credit facility entered into by Octavius Linq Holding Co. LLC, an indirect subsidiary of Caesars.

Caesars is a Las Vegas-based diversified casino-entertainment company.

NCP upsizes, allocates

NCP Finance upsized its Libor plus 975 bps five-year term loan (Caa1/B-) to $165 million from $160 million and priced it at 98, whereupon the deal was allocated, a market source said on Thursday.

The spread and reoffer price came on top of talk.

The deal features a 1.25% Libor floor and is non-callable for three years, then at 105 in year four.

Jefferies Finance LLC is the lead.

Proceeds will be used to refinance existing debt and fund an expansion of the company's existing business. Proceeds resulting from the $5 million upsizing of the loan will be used for general corporate purposes.

NCP is a Dayton, Ohio-based provider of funds for cash advances, title loans, subprime and installment loans for credit service organizations.

Systems Maintenance sets pricing

Systems Maintenance Services set pricing for $220 million of term loans on Thursday, according to a market source.

A $160 million first-lien term loan B is talked with a 425 bps spread to Libor and a 1% Libor floor to price at 99.0.

A $60 million second-lien term loan is talked with a Libor spread of 825 bps and a 1% Libor floor to price at 98.5.

The $240 million credit facility also has a $20 million revolver.

GE Capital Markets and BMO Capital Markets are leading the deal.

Proceeds will be used to refinance the existing debt structure and fund a dividend.

Systems Maintenance Services is a Charlotte, N.C.-based provider of managed IT asset lifecycle support services.

NES downsizes

NES Global Talent downsized its six-year first-lien term loan to $185 million from $200 million, a market source said on Thursday.

Spread talk widened to Libor plus 550 bps from Libor plus 475 bps to 500 bps.

The Libor floor remains unchanged at 1%.

One point of discount was added to the deal, taking the offering price to 98 from 99.

The deal features 101 soft call protection for one year.

The company's $260 million credit facility also includes a $60 million five-year revolver.

Commitments are due on Sept. 30.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

NES is an Altrincham, England-based provider of staffing services for the oil and gas industry.

99 Cents sets pricing

99 Cents Only Stores set pricing on its $100 million incremental term loan and a repricing of its existing $507 million term loan, a market source said on Thursday.

The Libor spread is 325 bps with a 1% Libor floor at par, with a 101 soft call for six months.

Commitments are due Oct. 3.

Current pricing on the existing term loan is Libor plus 400 bps with a 1.25% Libor floor.

RBC Capital Markets, BMO Capital Markets and Deutsche Bank Securities Inc. are the lead banks on the deal.

99 Cents is a City of Commerce, Calif.-based operator of extreme-value retail stores.

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